CEF, SFF welcome High Court decision on sale of strategic crude oil reserves

20th November 2020

The Central Energy Fund (CEF) and its subsidiary, the Strategic Fuel Fund (SFF), have welcomed the Western Cape High Court's judgment in reversing the 2015 sale of South Africa's strategic crude oil reserves.

The CEF stated that the "landmark victory" was the culmination of a series of court proceedings that was initiated by the CEF and the SFF after it was determined that a former SFF executive had "unlawfully concluded a series of agreements, which resulted in the disposal of South Africa's ten-million barrels of strategic crude oil reserves.

"We are vindicated by this High Court ruling. If these unlawful transactions were left unchallenged, the country would have suffered huge financial losses, given the repurchase price of the oil reserves at the prevailing market rates," SFF CEO Godfrey Moagi comments.

The CEF in September reported that the SFF had reached an in-principle agreement with diversified miner Glencore to reverse the 2015 sale of the strategic crude oil reserves.

The SFF also agreed to refund Glencore the money it had paid for the reserves.